The Australian Securities and Investments Commission (ASIC) has announced a probe into motor insurance renewal notices, following reports of misleading pricing practices in the industry.
The investigation,will cover around two-thirds of the car insurance market and examine concerns over fake discounts and excessive premium increases.
“People are unhappy with the premiums they’ve been quoted and the increases they’re seeing. And they’re also really unhappy with how those increases are being explained. That’s why we’ve decided to look into this issue,” said ASIC Commissioner Alan Kirkland.
He added that understating premium increases makes customers less likely to compare options or switch insurers.
As part of the probe, ASIC is calling for renewal notices to be clearer and simpler, ensuring that policyholders can easily understand the changes to their premiums.
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